DDK Review: DDKoin Ponzi points staking ROI scheme
DDK operates in the cryptocurrency MLM niche. The company does not provide a corporate address on their website.
The DDK website identifies husband and wife, Datuk Azrainuddin Zainal (aka Arai Ezzra) and Datin Nur Ezdiani Baharoddin as co-founders of the company. Nurshuhada Zainal holds the position of DDK’s CEO.
According to their respective digital footprints, Zainal, Rzdiani and Zainal are all based out of Malaysia.
This is also presumably where DDK is being operated from.
Alexa currently cite Malaysia, Indonesia and Brunei as providing 83% of traffic to the DDK website.
Despite being very obviously operated from Malaysia, DDK claims it is “bound to Singapore rules and regulation”.
Although not explicitly clarified on the DDK website, presumably the company has established one or more shell corporations in Singapore.
As far as I can tell, DDK has no actual physical operations in Singapore.
Marketing material on the DDK website reveals DDK previously launched a DinarCoin (DNC) in late 2015.
DNC appears to be your typical MLM pump and dump shitcoin. It was only tradeable internally and collapsed once new investors stopped investing.
In late 2017 DDK dropped DNC in favor of a new altcoin, DDKoin.
Read on for a full review of the DDK MLM opportunity.
DDK has no retailable products or services, with affiliates only able to market DDK affiliate membership itself.
The DDK Compensation Plan
DDK affiliates invest in DDKoin on the expectation of a ROI.
DDKoin serves no purpose outside of DDK, wherein it is only used to measure how much an affiliate has invested.
DDKoin is not publicly tradeable, meaning DDK can set it’s value at whatever they want through their Universal Blockchain Wallet internal exchange.
The current internal value of DDKoin is not disclosed on the DDK website.
Once invested in, DDK affiliates are able to park their DDKoin with the company.
This pays out a ROI on the parked DDKoin, at a rate of
- 10% over the first 12 months
- 8% over the next 6 months
- 6% over the next 6 months
- 4% over the next 6 months
- 2% every 12 months thereafter
This will continue for as long as DDK has any of the 41 million pre-generated DDKoins it has to dump onto affiliates left.
DDK also gives affiliates who have invested in over 10 DDKoin the chance to be “delegates”.
Delegates are charged 10 DDKoin. This fee qualifies them to earn a percentage of transaction fees collected from DDK affiliates (paid in DDKoin).
DDK pays a 10% referral commission on DDKoin parked with the company by personally recruited affiliates.
DDK pays residual commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
DDK caps payable unilevel team levels at fifteen.
Residual commissions are paid as a percentage of DDKoin acquired by unilevel team affiliates who have parked their DDKoin with the company.
How much of a percentage is paid out is determined by which level of the unilevel team a downline affiliate receives their parked DDKoin ROI on:
- level 1 (personally recruited affiliates) – 5%
- level 2 – 3%
- levels 3 and 4 – 2%
- levels 5 to 7 – 1%
- level 8 – 0.9%
- level 9 – 0.8%
- level 10 – 0.7%
- level 11 – 0.6%
- levels 12 to 15 – 0.5%
DDK affiliate membership appears to be free.
Participation in the attached MLM opportunity requires investment in DDKoin.
The DDK website does not specify a minimum investment amount.
DDK affiliates who invest in at least 10 DDKoin are able to purchase “delegate” status, which increases their income potential.
DDK is your typical MLM Ponzi scheme.
DDKoin is a shitcoin that serves no purpose outside of DDK itself. Thus it is also worthless outside of DDK.
The only reason a DDK affiliate would invest in DDKoin is on the representation its value will increase.
By offloading DDKoin onto new bagholders through DDK’s internal exchange, thus a ROI is achieved.
In an effort to string investors along for as long as possible, DDK encourages affiliates to “stake” their DDKoin with the company.
This I’ve referred to as “parking” your DDKoins in the compensation plan analysis of the review.
Essentially you invest in DDKoin, park your points with the company and they give you a ROI on your coins annually, then every six months for a bit and then annually again.
This costs DDK nothing, as all they’re doing is dumping DDKoin onto affiliates that they’ve generated at little to no cost.
While all this nonsense is going on, Azrainuddin Zainal, Nur Ezdiani and Nurshuhada Zainal are collecting real money from DDK affiliates.
This money is stashed away and never paid out again.
The only exception to this is the small amount initially used to pay returns, until there’s enough new gullible bagholders for initial investors to dump onto.
After that it’s all profit for DDK and its management.
In addition to Ponzi fraud through their internal exchange, DDK is also committing securities fraud.
DDK provides no evidence of it having registered to offer securities in its three top markets, Brunei, Indonesia and Malaysia.
The end-game for MLM cryptocurrency Ponzi schemes like DDK is that inevitably new investor recruitment slows down.
This correlates with a lack of new investment and activity within the network, meaning DDK management and their delegates take a pay cut.
Whereas initial investors steal most of what comes in from new investors, those convinced to park their DDKoin with the company won’t realize there’s nobody left to scam until it’s too late.
The 12 month lead time for the initial 10% parking ROI is plenty of time for DDK to cook the books until affiliates actually attempt to cash out.
When withdrawal requests languish or denied outright, the party is over and DDK collapses.
One final point I’d like to touch on is Brunei appearing to be the largest source of new DDK investment.
Brunei is a tiny nation of just 428,000 people. Although the country does have a securities regulator via the Capital Market Unit, there’s a good chance DDK will be their first major MLM cryptocurrency disaster.
My worry is that by the time DDK appears on the Capital Market Unit’s radar, the damage will have already been done – both economically and socially.
What with Brunei having such a small population and the DDK website currently the 271st most visited website nationally, things aren’t looking good.
Unfortunately for those in Brunei who have already invested (local ringleaders who are doing the recruiting aside), your money is already gone.
DDK will have laundered it through Singapore or whatever channels they’ve set up to squirrel away invested funds.
Malaysia and Indonesia might be able to take the hit when DDK inevitably collapses, but the consequences for Brunei could be devastating.
Please consider this before roping your family and friends into DDK.
DDK’s concept might seem “new” and “fresh” in a country not known for cryptocurrency adoption. DDK however is literally no different to the rest of the MLM crypto Ponzi schemes doing the rounds.
They all collapse and the majority of investors in each and every one of them suffer real losses.
Update 26th February 2019 – Following publication of this review, DDK has attempted a rebuttal.
BehindMLM addressed DDK’s rebuttal in a separate article published February 26th.